June 23, 2000
`
`Inventors: Scott Moskowitz & Michael BerryA Secure Personal Content ServerSECURE
`
`PERSONAL CONTENT SERVER
`
`Field of Invention
`The present invention relates to the secure distribution of digitized value-added
`information, or media content, while preserving the ability of publishers to make available
`unsecureunsecured versions of the same value-added information, or media content, without
`adverse effect to the systems security.
`Authentication, verification and authorization are all handled with a combination of
`cryptographic and steganographic protocols to achieve efficient, trusted, secure exchange of
`digital information.
`
`Cross-Reference To Related Application
`This application is based on and claims the benefit of pending U.S. Patent Application
`Serial No. 60/147,134, filed 08/04/99, entitled, “A Secure Personal Content Server.” MUST
`FOLLOW THIS SENTENCE WITH ONE OF THE TWO PARAGRAPHS BELOW” and
`pending U.S. Patent Application Serial No. 60/213,489, filed 06/23/2000, entitled “A Secure
`Personal Content Server.”
`This application also claims the benefit ofincorporates by reference the following
`applications: pending U.S. Patent Application Serial No. 09/046,627, filed 3/24/98, entitled
`“Method for Combining Transfer Function with Predetermined Key Creation”; pending U.S.
`Patent Application Serial No. 09/053,628, filed 04/02/98, entitled “Multiple Transform
`Utilization and Application for Secure Digital Watermarking”; pending U.S. Patent Application
`Serial No. 60/169,274, filed 12/7/99, entitled “Utilizing Data Reduction in Steganographic and
`Cryptographic Systems”; and U.S. Patent Application Serial No. ____________ , filed June 16,
`2000, entitled “Utilizing Data Reduction in Steganographic and Cryptographic Systems” (which
`is a continuation-in-part of PCT application No. PCT/US00/ 06522, filed 14 March 2000, which
`PCT application claimed priority to U.S. Provisional Application No. 60/125,990, filed 24 March
`1999) All of the patent applications previously identified in this paragraph are hereby
`incorporated by reference, in their entireties.This application also claims the benefit of pending
`pending U.S. Patent Application Serial No. 08/999,766, filed 7/23/97, entitled “Steganographic
`Method and Device”; pending U.S. Patent Application Serial No. 08/772,222, filed 12/20/96,
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`entitled “Z-Transform Implementation of Digital Watermarks”; pending U.S. Patent Application
`Serial No. 09/456,319, filed 12/08/99, entitled “Transform Implementation of Digital
`Watermarks”; pending U.S. Patent Application Serial No. 08/674,726, filed 7/2/96, entitled
`“Exchange Mechanisms for Digital Information Packages with Bandwidth Securitization,
`Multichannel Digital Watermarks, and Key Management”; pending U.S. Patent Application
`Serial No. 09/545,589, filed 04/07/2000, entitled “Method and System for Digital
`Watermarking”; pending U.S. Patent Application Serial No. 09/046,627, filed 3/24/98, entitled
`“Method for Combining Transfer Function with Predetermined Key Creation”; pending U.S.
`Patent Application Serial No. 09/053,628, filed 04/02/98, entitled “Multiple Transform
`Utilization and Application for Secure Digital Watermarking”; pending U.S. Patent Application
`Serial No. 09/281,279, filed 3/30/99, entitled “Optimization Methods for the Insertion,
`Protection, and Detection...”; U.S. Patent Application Serial No. ____________,09/594,719,
`filed June 16, 2000, entitled “Utilizing Data Reduction in Steganographic and Cryptographic
`Systems” (which is a continuation-in-part of PCT application No. PCT/US00/06522, filed 14
`March 2000, which PCT application claimed priority to U.S. Provisional Application No.
`60/125,990, filed 24 March 1999); and pending U.S. Application No 60/169,274, filed 12/7/99,
`entitled “Systems, Methods And Devices For Trusted Transactions.” All of the patent
`applications previously identified in this paragraph are hereby incorporated by reference, in their
`entireties.
`Background of the Invention
`The music industry is at a critical inflection point. Digital technology enables anyone to
`make perfect replica copies of musical recordings from the comfort of their home, or as in some
`circumstances, in an offshore factory. Internet technology enables anyone to distribute these
`copies to their friends, or the entire world. Indeed, virtually any popular recording is already
`likely available in the MP3 format, for free if you know where to look.
`How the industry will respond to these challenges and protect the rights and livelihoods
`of copyright owners and managers and has been a matter of increasing discussion, both in private
`industry forums and the public media. Security disasters like the cracking of DVD-Video’s CSS
`security system have increased doubt about the potential for effective robust security
`implementations. Meanwhile, the success of non-secure initiatives such as portable MP3 players
`lead many to believe that these decisions may have already been made.
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`Music consumers have grown accustomed to copying their music for their own personal
`use. This fact of life was written into law in the United States via the Audio Home Recording Act
`of 1992. Millions of consumers have CD players and purchase music in the Compact Disc
`format. It is expected to take years for a format transition away from Red Book CD Audio to
`reach significant market penetration.
`Hence, a need exists for a new and improved system for protecting digital content against
`unauthorized copying and distribution.
`Summary of the Invention
`A local content server system (LCS) for creating a secure environment for digital content
`is disclosed, which system comprises: a communications port in communication for connecting
`the LCS via a network to at least one Secure Electronic Content Distributor (SECD), which
`SECD is capable of storing a plurality of data sets, is capable of receiving a request to transfer at
`least one content data set, and is capable of transmitting the at least one content data set in a
`secured transmission; a rewritable storage medium whereby content received from outside the
`LCS may be stored and retrieved; a domain processor that imposes rules and procedures for
`content being transferred between the LCS and devices outside the LCS; and a programmable
`address module which can be programmed with an identification code uniquely associated with
`the LCS. The LCS is provided with rules and procedures for accepting and transmitting content
`data. Optionally, the system may further comprise: an interface to permit the LCS to
`communicate with one or more Satellite Units (SU) which may be connected to the system
`through the interface, which SUs are capable of receiving and transmitting digital content; at
`least one SU; and/or at least one SECD. The SECD may have a storage device for storing a
`plurality of data sets, as well as a transaction processor for validating the request to purchase and
`for processing payment for a request to retrieve one of the data sets. The SECD typically includes
`a security module for encrypting or otherwise securitizing data which the SECD may transmit.
`A method for creating a secure environment for digital content for a consumer is also
`disclosed. As part of the method, a LCS requests and receives a digital data set that may be
`encrypted or scrambled. The digital data set may be embedded with at least one robust open
`watermark, which permits the content to be authenticated. The digital data set is preferably be
`embedded with additional watermarks which are generated using information about the LCS
`requesting the copy and/or the SECD which provides the copy. Once received by the LCS, the
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`LCS exercises control over the content and only releases the data to authorized users. Generally,
`the data is not released until the LCS embeds at least one additional watermark based upon
`protected information associated with the LCS and/or information associated with the user.
`Another embodiment of the method of the present invention comprises: connecting a
`Satellite Unit to an local content server (LCS), sending a message indicating that the SU is
`requesting a copy of a content data set that is stored on the LCS, said message including
`information about the identity of the SU; analyzing the message to confirm that the SU is
`authorized to use the LCS; retrieving a copy of the requested content data set; assessing whether
`a secured connection exists between the LCS and the SU; if a secured connection exists,
`embedding a watermark into the copy of the requested content data set, said watermark being
`created based upon information transmitted by the SU and information about the LCS; and
`delivering the content data set to the SU for its use.
`The SU may also request information that is located not on the LCS, but on an SECD, in
`which case, the LCS will request and obtain a copy from the SECD, provided the requesting SU
`is authorized to access the information.
`Digital technology offers economies of scale to value-added data not possible with
`physical or tangible media distribution. The ability to digitize information both reduces the cost
`of copying and enables perfect copies. This is an advantage and a disadvantage to commercial
`publishers who must weigh the cost reduction against the real threat of unauthorized duplication
`of their value-added data content. Because cost reduction is an important business consideration,
`securing payment and authenticating individual copies of digital information (such as media
`content) presents unique opportunities to information service and media content providers. The
`present invention seeks to leverage the benefits of digital distribution to consumers and
`publishers alike, while ensuring the development and persistence of trust between all parties, as
`well as with any third parties involved, directly or indirectly, in a given transaction.
`In another approach that is related to this goal, there are instances where transactions
`must be allowed to happen after perceptually-based digital information can be authenticated.
`(Perceptually based information is information whose value is in large part, based upon its ability
`to be perceived by a human, and includes for example, acoustic, psychoacoustic, visual and
`psychovisual information.) The process of authenticating before distributing will become
`increasingly important for areas where the distributed material is related to a trust-requiring
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`transaction event. A number of examples exist. These include virtual retailers (for example, an
`on-line music store selling CDs and electronic versions of songs); service providers (for example,
`an on-line bank or broker who performs transactions on behalf of a consumer); and transaction
`providers (for example, wholesalers or auction houses). These parties have different
`authentication interests and requirements. By using the teachings of this application, these
`interests and requirements may be separated and then independently quantified by market
`participants in shorter periods of time.
`All parties in a transaction must authenticate information that is perceptually observable
`before trust between the parties can be established. In today’s world, information (including
`perceptually rich information) is typically digitized, and as a result, can easily be copied and
`redistributed, negatively impacting buyers, sellers and other market participants. Unauthorized
`redistribution confuses authenticity, non-repudiation, limit of ability and other important
`“transaction events.” In a networked environment, transactions and interactions occur over a
`transmission line or a network, with buyer and seller at different points on the line or network.
`While such electronic transactions have the potential to add value to the underlying information
`being bought and sold (and the potential to reduce the cost of the transaction), instantaneous
`piracy can significantly reduce the value of the underlying data, if not wholly destroy it. Even the
`threat of piracy tends to undermine the value of the data that might otherwise exist for such an
`electronic transaction.
`Related situations range from the ability to provably establish the “existence” of a virtual
`financial institution to determining the reliability of an “electronic stamp.” The present invention
`seeks to improve on the prior art by describing optimal combinations of cryptographic and
`steganographic protocols for “trusted” verification, confidence and non-repudiation of digitized
`representations of perceptually rich information of the actual seller, vendor or other associated
`institutions which may not be commercial in nature (confidence building with logo’s such as the
`SEC, FDIC, Federal Reserve, FBI, etc. apply). To the extent that an entity plays a role in
`purchase decisions made by a consumer of goods and services relating to data, the present
`invention has a wide range of beneficial applications. One is enabling independent trust based on
`real world representations that are not physically available to a consumer or user. A second is the
`ability to match informational needs between buyers and sellers that may not be universally
`appealing or cost effective in given market situations. These include auction models based on
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`recognition of the interests or demand of consumers and market participants—which make
`trading profitable by focusing specialized buyers and sellers. Another use for the information
`matching is to establish limits on the liability of such institutions and profit-seeking entities, such
`as insurance providers or credit companies. These vendors lack appropriate tools for determining
`intangible asset risk or even the value of the information being exchanged. By encouraging
`separate and distinct “trust” arrangements over an electronic network, profitable market-based
`relationships can result.
`The present invention can make possible efficient and openly accessible markets for
`tradable information. Existing transaction security (including on-line credit cards, electronic cash
`or its equivalents, electronic wallets, electronic tokens, etc.) which primarily use cryptographic
`techniques to secure a transmission channel--but are not directly associated or dependent on the
`information being sold--fails to meet this valuable need. The present invention proposes a
`departure from the prior art by separating transactions from authentication in the sale of digitized
`data. Such data may include videos, songs, images, electronic stamps, electronic trademarks, and
`electronic logos used to ensure membership in some institutional body whose purpose is to assist
`in a dispute, limit liability and provide indirect guidance to consumers and market participants,
`alike.
`
`With an increasingly anonymous marketplace, the present invention offers invaluable
`embodiments to accomplish “trusted” transactions in a more flexible, transparent manner while
`enabling market participants to negotiate terms and conditions. Negotiation may be driven by
`predetermined usage rules or parameters, especially as the information economy offers
`potentially many competitive marketplaces in which to transact, trade or exchange among
`businesses and consumers. As information grows exponentially, flexibility becomes an advantage
`to market participants, in that they need to screen, filter and verify information before making a
`transaction decision. Moreover, the accuracy and speed at which decisions can be made reliably
`enables confidence to grow with an aggregate of “trusted transactions”. “Trusted transactions”
`beget further “trusted transactions” through experience. The present invention also provides for
`improvements over the prior art in the ability to utilize different independently important
`“modules” to enable a “trusted transaction” using competitive cryptographic and steganographic
`elements, as well as being able to support a wide variety of perceptually-based media and
`information formats. The envisioned system is not bound by a proprietary means of creating
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`recognition for a good or service, such as that embodied in existing closed system. Instead, the
`flexibility of the present invention will enable a greater and more diverse information
`marketplace.
`The present invention is not a “trusted system”, per se, but “trusted transactions” are
`enabled, since the same value-added information that is sought may still be in the clear, not in a
`protected storage area or closed, rule-based “inaccessible virtual environment”.
`A related additional set of embodiments regards the further separation of the transaction
`and the consumer’s identification versus the identification of the transaction only. This is
`accomplished through separated “trusted transactions” bound by authentication, verification and
`authorization in a transparent manner. With these embodiments, consumer and vendor privacy
`could be incorporated. More sophisticated relationships are anticipated between parties, who can
`mix information about their physical goods and services with a transparent means for consumers,
`who may not be known to the seller, who choose not to confide in an inherently closed “trusted
`system” or provide additional personal information or purchasing information (in the form of a
`credit card or other electronic payment system), in advance of an actual purchase decision or
`ability to observe (audibly or visibly) the content in the clear. This dynamic is inconsistent with
`the prior art’s emphasis on access control, not transparent access to value-added information (in
`the form or goods or services), that can be transacted on an electronic or otherwise anonymous
`exchange.
`These embodiments may include decisions about availability of a particular good or
`service through electronic means, such as the Internet, or means that can be modularized to
`conduct a transaction based on interconnection of various users (such as WebTV, a Nintendo or
`Sony game console with network abilities, cellular phone, PalmPilot, etc.). These embodiments
`may additionally be implemented in traditional auction types (including Dutch auctions).
`Consumers may view their anonymous marketplace transactions very differently because of a
`lack of physical human interactions, but the present invention can enable realistic transactions to
`occur by maintaining open access and offering strict authentication and verification of the
`information being traded. This has the effect of allowing legacy relationships, legacy
`information, and legacy business models to be offered in a manner which more closely reflects
`many observable transactions in the physical world. The tremendous benefits to sellers and
`consumers is obvious; existing transactions need not reduce their expectations of security. As
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`well, the ability to isolate and quantify aspects of a transaction by module potentially allows for
`better price determinations of intangible asset insurance, transaction costs, advertising costs,
`liability, etc. which have physical world precedent.
`It is contemplated that the publisher and/or owner of the copyrights will want to dictate
`restrictions on the ability of the purchaser to use the data being sold. Such restrictions can be
`implemented through the present invention, which presents a significant advantage over the prior
`art (which attempts to effect security through access control and attempted tight reigns over
`distribution). See US Pat. No. 5,428,606 for a discussion on democratizing digital information
`exchange between publishers and subscribers of said information.
`A goal for providers of value-added content is to maximize profits for the sale of their
`content. Marketing and promotion of the informational content cannot be eliminated, considering
`the ever increasing amount of information vying for consumers and other market participant’s
`attention. Nonetheless, in a market where the goods are speculatively valued, marketing budgets
`are inherently constrained, as you are trying to create demand for a product with little inherent
`value. Where such markets have participants, both buyers and sellers and their respective agents,
`with access to the same information in real time, market mechanisms efficiently price the market
`goods or services. These markets are characterized by “price commoditization” so buyers and
`sellers are limited to differentiating their offerings by selection and service. If the markets are
`about information itself, it has proven more difficult to accurately forecast the target price where
`sellers can maximize their profits. Quality and quantity provide different evaluation criteria of
`selection and service relating to the information being traded. The present invention regards a
`particular set of implementations of value-added content security in markets which may include
`unsecureunsecured and secure versions of the same value-added data (such as songs, video,
`research, pictures, electronic logos, electronic trademarks, value-added information, etc.).
`Transactions for value-added information can occur without any physical location. So,
`there is a need for a secure personal content server for which the value added information can be
`offered for transactions in a manner similar to real world transactions. One feature is to offer
`seemingly similar value added information in differing quality settings. These settings have
`logical relationships with fidelity and discreteness and are determined by market participants.
`Another issue is that because purchasers may be anonymous to sellers, it is more important to
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`have a particular value-added information object available so that market participants can fulfil
`therefulfill their role are consumers.
`One fundamental weakness of current information markets is the lack of mechanisms to
`ensure that buyers and sellers can reach pricing equilibrium. This deficit is related to the
`“speculative” , “fashion”, and “vanity” aspects of perceptual content (such as music, video, and
`art or some future recognition to purchasers). For other goods and services being marketed to an
`anonymous marketplace, market participants may never see (and indeed, may choose to never
`see, an actual location where the transaction may physically occur. A physical location may
`simply not exist. There are a number of such virtual operations in business today, which would
`benefit from the improvements offered under the present system.
`The present invention also seeks to provide improvements to the art in enabling a realistic
`model for building trust between parties (or their agents) not in a “system”, per se. Because prior
`art systems lack any inherent ability to allow for information to flow freely to enable buyers and
`sellers to react to changing market conditions. The present invention can co-exist with these
`“trusted systems” to the extent that all market participants in a given industry have relatively
`similar information with which to price value-added data. The improvement over such systems,
`however, addresses a core features in most data-added value markets:’ predictions, forecasts, and
`speculation over the value of information is largely aan unsuccessful activity for buyers and
`sellers alike. The additional improvement is the ability to maintain security even with
`unsecureunsecured or legacy versions of value-added information available to those who seek
`choices that fit less quantitative criteria —”“aesthetic quality” of the information versus
`“commercial price”. Purchase or transaction decisions can be made first by authenticating an
`electronic version of a song, image, video, trademark, stamp, currency, etc.
`Additional anticipated improvements include the ability to support varying pricing
`models such as auctions that are difficult or impossible to accomplish under existing prior art that
`leaves all access and pricing control with the seller alone, and the separation of the transaction
`from the exchange of the value-added information, which gives more control to buyers over their
`identities and purchasing habits, (both sensitive and separately distinct forms of “unrelated”
`value-added information). Essentially, no system known in the art allows for realistic protocols to
`establish trust between buyers and sellers in a manner more closely reflecting actual purchasing
`behavior of consumers and changing selling behavior of sellers. The goal in such transactions is
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`the creation of trust between parties as well as “trusted relationships” with those parties. The
`present invention is an example of one such system for media content where the “aesthetic” or
`“gestalt” of the underlying content and its characteristics is a component of buying habits.
`Without an ability to open distribution systems to varying buyers and sellers, media content may
`be priced at less than maximum economic value and buyers may be deprived of a competitive,
`vigorous marketplace for exciting media content from many different creative participants.
`To the extent that recognition plays such a key role in an information economy,
`value-added data should be as accessible as possible to the highest number of market participants
`in the interests of furthering creativity and building a competitive marketplace for related goods
`and services. This is to the benefit of both buyers and sellers as well as the other participants in
`such an economic ecosystem. The Internet and other transmission-based transactions with
`unknown parties presents a number of challenges to information vendors who wish to develop
`customer relations, trust and profitable sales. The information economy is largely an anonymous
`marketplace, thus, making it much more difficult to identify consumers and sellers. The present
`invention provides remedies to help overcome these weaknesses.
`The present invention is concerned with methods and systems which enable secure, paid
`exchange of value-added information, while separating transaction protocols. The present
`invention improves on existing means for distribution control by relying on authentication,
`verification and authorization that may be flexibly determined by both buyers and sellers. These
`determinations may not need to be predetermined, although pricing matrix and variable access to
`the information opens additional advantages over the prior art. The present invention offers
`methods and protocols for ensuring value-added information distribution can be used to facilitate
`trust in a large or relatively anonymous marketplace (such as the Internet’s World Wide Web).
`We now define components of the preferred embodiments for methods, systems, and
`devices.
`
`Definitions:
`
`Local Content Server (LCS): A device or software application which can securely store
`a collection of value-added digital content. The LCS has a unique ID.
`
`Secure Electronic Content Distributor (SECD): An entity, device or software application
`which can validate a transaction with a LCS, process a payment, and deliver digital content
`securely to a LCS. In cryptographic terms, the SECD acts as a “certification authority” or its
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`equivalent. SECDs may have differing arrangements with consumers and providers of
`value-added information. (The term “content” is used to refer generally to digital data, and may
`comprise video, audio, or any other data that is stored in a digital format).
`Satellite Unit (SU): A portable medium or device which can accept secure digital content
`from a LCS through a physical, local connection and which can either play or make playable the
`digital content. The SU may have other functionality as it relates to manipulating the content,
`such as recording. The SU has a unique ID. An SU may be a CD player, a video camera, a
`backup drive, or other electronic device which has a storage unit for digital data.
`LCS Domain: A secure medium or area where digital content can be stored, with an
`accompanying rule system for transfer of digital content in and out of the LCS Domain. The
`domain may be a single device or multiple devices—all of which have some common ownership
`or control. Preferably, a LCS domain is linked to a single purchasing account. Inside the domain,
`one can enjoy music or other digital data without substantial limitations—as typically a license
`extends to all personal use.
`SecureChannelTMSecureChannelTm: A secure channel to pass individualized content to
`differentiate authentic content from legacy or unauthorized, pirated content. For example, the
`Secure Channel may be used as an auxiliary channel through which members of the production
`and distribution chain may communicate directly with individual consumers. Preferably, the
`Secure Channel is never exposed and can only be accessed through legitimate methods.
`SecureChannel may carry a value-adding component ( VAC). The ability to provide consumers
`with value adding features will serve to give consumers an incentive to purchase new, secure
`hardware and software that can provide the additional enhanced services. The SecureChannel
`may also include protected associated data—data which is associated with a user and/or a
`particular set of content.
`Standard Quality: A transfer path into the LCS Domain which maintains the digital
`content at a predetermined reference level or degrades the content if it is at a higher quality level.
`In an audio implementation, this might be defined as Red Book CD Quality (44100 Hz., 16 bits,
`2 channels). This transfer path can alternately be defined in terms of a subset of VAC’s or a
`quality level associated with particular VAC’s. If a VAC is not in the subset, it is not passed. If a
`VAC is above the defined quality level, it is degraded.
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`Low Quality: A transfer path into the LCS Domain which degrades the digital content to
`a sub-reference level. In an audio implementation, this might be defined as below CD Quality
`(for instance, 32000 Hz., 16 bits, 2 channels). This transfer path can alternately be defined in
`terms of an absence of VAC’s or a degraded quality level associated with particular VAC’s.
`High Quality: A transfer path into the LCS Domain which allows digital content of any
`quality level to pass unaltered. This transfer path can alternately be defined in terms of a
`complete set of VAC’s or the highest quality level available associated with particular VAC’s.
`Rewritable Media: An mass storage device which can be rewritten (e.g. hard drive,
`CD-RW, Zip cartridge, M-O drive, etc...).
`Read-Only Media: A mass storage device which can only be written once (e.g. CD-ROM,
`CD-R, DVD, DVD-R, etc...). Note: pre-recorded music, video, software, or images, etc. are all
`“read only” media.
`Unique ID: A Unique ID is created for a particular transaction and is unique to that
`transaction (roughly analogous to a human fingerprint). One way to generate a Unique ID is with
`a one-way hash function. Another way is by incorporating the hash result with a message into a
`signing algorithm will create a signature scheme. For example, the hash result may be
`concatenated to the digitized, value added information which is the subject of a transaction.
`Additional uniqueness may be observed in a hardware device so as to differentiate that device,
`which may be used in a plurality of transactions, from other similar devices.
`Value-added: Value-added
`information
`is differentiated
`from non-commoditized
`information in terms of its marketability or demand, which can vary, obviously, from each
`market that is created for the information. By way of example, information in the abstract has no
`value until a market is created for the information (i.e., the information becomes a commodity).
`The same information can be packaged in many different forms, each of which may have
`different values. Because information is easily digitized, one way to package the “same”
`information differently is by different levels of fidelity and discreteness. Value is typically
`bounded by context and consideration.
`Authentication: A receiver of a “message” (embedded or otherwise within the
`value-added information) should be able to ascertain the original of the message (or by effects,
`the origin of the carrier within which the message is stored). An intruder should not be able to
`successfully represent someone else. Additional functionality such as Message Authentication
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